SeaWorld's $3.4 Billion Offer for Cedar Fair Is a Win-Win Deal
Looking to make a bigger splash than a killer whale in a bathtub, SeaWorld Entertainment (NYSE: SEAS) reportedly made a $3.4 billion offer to snap up regional amusement park operator Cedar Fair (NYSE: FUN) this week. Bloomberg broke the story, and Cedar Fair is reportedly studying the unsolicited all-cash offer.
It doesn't seem like a plausible deal on the surface. Didn't Cedar Fair rebuff advances when rival Six Flags Entertainment (NYSE: SIX) reportedly made a stock-and-cash offer valued at $4 billion in late 2019? Why would Cedar Fair settle for less? SeaWorld is also doing well as the industry's hottest stock. Why would it risk the bullish momentum with a sizable acquisition and the clunky digestion process that follows? The deal doesn't make sense, but dive deep things become clearer for both parties.
Source Fool.com